Ad-hoc announcement according to Section 15 WpHGLinde adjusts its medium-term targets for 2017

Adhoc News

Munich, 30 November 2015 – The Linde AG informs that from today´s perspective it will not achieve the target for 2017 of Return on Capital Employed (ROCE) of 11 to 12 percent and now expects ROCE to be between 9 and 10 percent.

The targeted Group operating profit for 2017 of EUR 4.5 to 4.7 bn is also not achievable and is expected to come in between EUR 4.2 to 4.5 bn.

The main reasons for the adjustments are substantially changed overall conditions compared to October 2014, when the targets were defined. On the one hand the growth rates of industrial production relevant for the industrial gases business have meanwhile been significantly reduced. Also the state-controlled price reductions in the US healthcare market in 2016 and 2017 are expected to be stronger than originally assumed. Moreover the Engineering Division will contribute less to Group operating profit than originally planned. Main reason is an expected lower order intake due to a medium-term low oil price resulting in investment hesitancy among customers.